Title: Navigating Rental Car Insurance Disputes When Using Loyalty Points
Understanding How Points Affect Your Rental Car Insurance Claims
Recently, I encountered a situation that highlights the complexities of using loyalty points for rental cars and the subsequent insurance coverage. Here’s an overview of my experience and the questions it raises about insurance claims when discounts are involved.
The Scenario
I rented a vehicle through Enterprise’s online platform, applying my loyalty points to significantly reduce the total cost. At the rental counter, I was only charged $5.47—the amount covered by my points— and I paid this fully with my Chase Sapphire Reserve (CSR) credit card.
Insurance Coverage Details
The Chase Sapphire Reserve card offers primary coverage for rental cars, provided two conditions are met:
- The entire rental amount is charged to the CSR card.
- The renter declines the rental company’s collision damage waiver (CDW).
In my case, I fulfilled both requirements.
The Incident and Subsequent Claim
During my rental period, I had a minor collision. After returning the vehicle, I filed a claim with CSR’s insurance provider, Virginia Surety/Assurant. Having successfully claimed this benefit before, I was surprised when they began to scrutinize my claim more intensely.
Their Request
The insurer insists on seeing a billing statement that clearly shows the full rental charge, which they define as the total amount paid for the rental. Despite providing multiple copies of the credit card statement showing a charge of just $5.47—corresponding to the points used—they continue to ask for additional proof, seemingly dismissing the documentation I’ve submitted.
Key Concerns
This situation raises some important questions:
- Could the use of loyalty points to reduce the rental cost lead to denial of coverage?
- Does the insurer interpret the “full rental cost” differently when a discount or points redemption is involved?
- Are there legal or policy grounds I can leverage to support my claim?
Additional Context
- The entire amount billed at the counter was only $5.47.
- I explicitly declined Enterprise’s CDW coverage.
- The terms of my CSR card’s insurance state: “Cardmembers must charge the full amount of the car rental booking to their Chase Sapphire card,” without mention of restrictions related to discounts or points.
Reflections and Next Steps
Had I known that using points might jeopardize my insurance claim, I might have considered paying the full amount outright. However, in my haste to catch a flight with family, I opted for the points redemption
